Mumbai-based property developer Oberoi Constructions, led by billionaire Vikas Oberoi, is planning a Rs 4,000 crore ($1 billion) initial public offer by year end.

Oberoi Constructions has hired investment banking major Morgan Stanley to value the company. The real estate developer plans to issue fresh shares under the IPO, however, the exact dilution of the stake is not known. The company plans to use the IPO proceeds for land acquisition and fund upcoming projects including the Oberoi Garden City and four and five-star hotels across the country.

“We have executed many major projects in Mumbai and have a good land parcel in the heart of the city. We will not go for pre-IPO placement of shares,'’ said Vikki Oberoi, managing director of Oberoi Constructions.

The company has a land bank of 130 acres mainly in the western suburbs of Mumbai. It has eight residential, commercial and retail projects under construction with a development potential of 21 million sq ft, he said.

On volatility in the stock market and hammering of realty stocks, Oberoi said, “Stock markets will distinguish between the performers and non-performers. We are confident of a good issue,'’ he said.

The company is building Oberoi Garden City, an 80 acre composite realty project including office complexes, malls, schools and residential townships with expected revenues of Rs 8,000 crore (Rs 80 billion).

The company has plans to build such projects in all the major cities including Chennai, Bangalore and Hyderabad among others.

These projects will be spread over 80-100 acres. Based on land prices in different cities, these projects have a land acquisition cost of Rs 400 crore (Rs 4 billion) to Rs 500 crore (Rs 5 billion) and a construction cost of nearly Rs 2,000 crore (Rs 20 billion).

“We are expecting revenues of Rs 4,000 crore from these projects in three years,'’ said Oberoi. The company has also placed a Rs 2,000 crore order with construction major L& T for executing its realty projects.

Oberoi has tied up with Westin Hotels and Resorts of global hospitality major Starwood Hotels for its five-star hotel at Oberoi Commerz in Mumbai.

The company has acquired land for four more hotels in Mumbai and Pune. It is also scouting for properties wherever the company is building Garden City projects. The company will have five hotels, in the four-star and five-star categories, in the next five years, he said.

“Our first hotel will open by 2009 beginning. We have plans to open one hotel every year for the next five years. Starwood will be a preferred partner for our hospitality venture,'’ Oberoi said.

Apart from the IPO proceeds, the company is planning to use internal accruals for the development of upcoming properties. Oberoi also added, “the company would also go for infrastructure projects if they contain real estate element”.

ICICI Home Finance expects Kolkata to contribute in a big way to the residential financing market in the next 3 years.

“Although the residential financing market space in India is about Rs 1 lakh crore and the market in Kolkata is around Rs 2,000 crore, it is expected to grow at a much faster rate compared to the other metros in the next 2-3 years,” said Sunil Rohokale, the managing director and CEO of ICICI Home Finance.

Saturation in other markets will give a boost to the market in Kolkata. Mumbai leads the residential financing market with a share of 10 per cent, followed by Delhi and Bangalore with 9 and 7 per cent respectively.

“Slowly, but steadily, the other markets are getting saturated and the Kolkata market, being relatively cheaper, provides a better alternative,” he added.

Rohokale also attributed Kolkata’s rise to the state government’s proactive role in promoting lower and middle income segments, where affordable housing is possible.

“The West Bengal government is looking for inclusive growth and by providing incentives, by encouraging public private partnerships not only in the higher-end segment like commercial buildings but also in the middle and lower segments as well, which consist of mostly small housing projects,” he said while talking to Business Standard on the sidelines of an interactive session at Credai Bengal Real Estate Conclave.

It would be in the affordable housing segment, where most of the private investment is going to come, feels Rohokale.

In the last two years, the real estate market attracted an investment of around $7 billion, including $3 billion from equity. Of this, the share of Kolkata was around 3.5 per cent, amounting to $150 million.

“There is a huge demand in Kolkata for affordable housing flats, which range between Rs 15 lakh and Rs 25 lakh, but the developers are most active in the premium-range flats between Rs 25 lakh and Rs 50 lakh. Hence with the state government providing incentives, affordable housing space looks most attractive in Kolkata,” Rohokale added.

Source: http://www.business-standard.com

Rudrapur’s ascendance as a star industrial hub has been prompted by economic, demographic and geographic factors but Centre’s tax holiday for industries is expected to transmute it into an urban paradise

The sylvan surroundings of Rudrapur, a sub-division of Udham Singh Nagar, better known as ‘Gateway to Kumaon Hills’, echoes with the sounds of construction these days. Penthouses against the backdrop of Kumaon hills, ultra-modern luxury apartments by glassy lakes, villas among lush green parks, are just some of the dreams builders have been weaving to lure potential buyers.

This Uttaranchal town in the plains is emerging as one of the fastest growing industrial cities in the country and a premier business centre with big Indian and multinational companies of the likes of Nestle, Tata, Britannia, Dabur, Honda, Bajaj, Parle, Jindal, Mahindra & Mahindra and Voltas to name a few, investing Rs 7000 crore. With around 400 companies expected to start operations in the next one year alone, Rudrapur is poised to be the new industrial hub of India.

Realising the immense market potential, pan-Indian realtors are descending in droves to acquire land that has become scarce and exorbitantly priced. Many big players have already started to work on integrated townships, transforming quiet pockets into beehives of construction activity.

Rudrapur has emerged as the economic capital of Uttaranchal. After being declared a Special Economic Zone (SEZ), more than 500 industries have come up here.

It is held by many that the rush in real estate developments is primarily the result of tax and economic incentives announced by the Central and state governments to promote industrial growth. The latest scramble has been triggered by the declaration of Rudrapur as a non-tariff area for central excise, custom and sales tax duties for a period of 10 years. This span may also be extended by the Central government. This has prompted industry players to set up big plants and the subsequent settling of numerous corporates. Companies that begin production before a cut-off date get a 10-year excise duty exemption, five-year full income tax break and reduced levels for the next five years. The state government has, as a result, witnessed hectic activity on the industrial front with a host of companies, from the automobile, pharma and FMCG sectors, setting up facilities here. The attractive tax breaks have apparently worked for Uttaranchal, which received investments of around Rs 20,000 crore in the past three years, prompting it to scout for fresh land to house new industries.

Arvinder Singh, CMD of Alliance Nirmaan Limited, a leading developer which pioneered real estate development at Rudrapur and in Uttaranchal, points out, “The transfer of 5000 acres of GB Pant University land to State Industrial Development Corporation of Uttaranchal Ltd (SIDCUL) for development of industrial complex has been a milestone and Centre’s tax breaks coupled with the cooperative approach of the state government have triggered industrial growth in Rudrapur.”

Rohtas Goel, MD, Omaxe Construction Ltd which is coming up with its integrated township Omaxe Riviera, asserts, “The tax breaks have facilitated the overall economic development of Rudrapur. It has attracted several corporates to open their offices eventually triggering a rise in demand for housing and commercial complexes.”

Infrastructure has been a big draw at Rudrapur. Partho Kunar, VP (Marketing), Alliance Nirmaan Ltd, explains, “Unlike most of the towns and cities in India, infrastructure is not a botheration. There is no dearth of electricity or water. Moreover, electricity rates are the lowest in the state and you can get water by digging not even five feet.” To further consolidate its position on power, the government has planned 10 power projects at a cost of Rs 800 crore.

Connectivity is good as the town is situated on the Delhi-Nainital Highway (NH 74) and Khatema-Panipat Highway (NH 87). Four-laning of road from Bareilly to Moradabad is under way. The Pantnagar airport in the vicinity is a big plus. The airport is being renovated to enable Boeings and ATRs to land from next year. The government is also working on improving the infrastructure and connectivity especially around the industrial belts.

Literacy rate at Uttaranchal is very high. This bodes well for industrial growth because educated workforce is an important requirement for industries to prosper. Government policies have been economy-friendly marked by fewer technical snags and less bureaucratic hassles.

Economic factors apart, there is a demographic factor that has contributed to the demand for real estate: the presence of a strong Punjabi community, many of who live abroad. These NRIs have shown a lot of interest in the upcoming high-end real estate products.

Looking to safeguard your future but doesn’t know the way or medium? If you fall into this category then this is the time to invest your money in real estate property in India. Real estate India is one field in which is catching a lot of eye balls and also attracting various foreign investors. With liberalized Indian government policies more and more foreign investors are gearing up to invest in real estate property in India. India is one country which boasts vast geographical expansion and that’s the reason why many people are now targeting Indian properties.

Investing in real estate property in India is the safest bet as experts have predicted that in coming future Indian property will be riding high and be the most profit reaping medium. The main highlight of this boom is that the Indian real estate development is not only restricted to metropolitan cities such as Delhi, Mumbai and Kolkata but it is spreading in small Indian cities too such as Indore, Pune, Kanpur and even Noida. This shows that Indian real estate development is going in the right direction along with the full-fledged development.

According to the property experts, investing in real estate property in India will strengthen your financial position and also reap whooping benefits. To improve and attract more investors to invest in real estate property in India, Indian government has taken various transparent steps so that no one is at loss. If we look at the current trend you can say that having an Indian property in your kitty will surely reap profits for you in the future. The main reason behind this is that every year there is a rise in the property prices and also Indian property provides you the diversity.

That’s why real estate property in India has emerged as a keen competitor in the global real estate market. India offers every kind of property whether it is seaside property or property in a hill station or even a magnificent villa in Kodaikanal or Mahabaleshwar. In short, you name it and India offers it. Thus, if you wish to reap benefits and profits with your investment then investing in real estate property in India is the wisest choice.

Taneja Developers has announced the launch of TDI Greens, an integrated, self- sufficient, international residential township in Sector 16, Sonepat. Adjacent to NH – I and just 15 minutes drive from the north Delhi border, the township has been conceptualized to offer an international living experience at an affordable price to those in north and north-west Delhi, including colonies like Rohini, Pitampura, Shalimar Bagh, Ashok Vihar, Model Town, Pashchim Vihar, and surrounding cities like Rohtak and Panipat.

Spread over an area of 125 acres, TDI Greens will take care of shopping, entertainment, education, and health care needs of the residents. It is going to have well lit roads, open spaces with excellent landscaping, exquisitely designed shopping-cum-community centre, club and recreational facilities, play school, primary school, and state-of-the-art hospital and health care facilities. The security system and maintenance facilities conform to global norms. The total project cost is approximately Rs 100 crores, and work is expected to be completed by the year 2007

Increasing interest rates on home loans, oversupply in development phase, and implementation of the project are some temporary dampeners for domestic property in India market which are further fuelled by strong fundamentals.

According to Prabhudas Lilladhar, a leading equity broking house in India, there are long-term drivers too which include good GDP growth, increasing affordability, conducive demographics, rapid urbanization, and increasing mortgage penetration, besides an improving regulatory framework.

The National Housing Bank drives the shortage of residential property at 45 million units during the 11th Five Year Plan. The urban housing shortage is determined at 22 million units, which clearly indicates towards an annual demand of 4.5 million units.

The commercial property market in India is largely benefited by a high proliferation of IT companies which are accountable for 60-70 per cent of the total demand.

As per the data showcased by Nasscom, the IT/ITes sector employs 1.63 million people. The number will grow up to 0.67 million professional by 2010. Staying in step with the demand requirements, this would involve 95-110 million sq ft by 2010.

As far as Indian retail industry is concerned, its size is believed to be $250 billion. The sector is likely to grow at the rate of 10% per annum

Indian real estate is making rapid strides on the back of country’s surging economy. The growing developments are also giving a boost to the Indian job market which has certainly been poised for greater dynamism after a high proliferation of IT companies.

According to a quarterly survey conducted by Manpower Inc., a global HR consultancy firm, the employer spectrum including the real estate, retail, and manufacturing has informed to have experienced a rise in their hiring activities.

With employers drafting and executing business strategies, hiring activity is projected to get an increased momentum in this quarter. The optimism of Indian employers is a true barometer of the development taking across India.

Job sector in India has been primarily pushed by the factors such as finance, insurance, and property market. A large number of employers say to have an increase in their hiring plans.

‘The increased hiring in the services sector is a reflection of the role of this sector in India’s GDP growth. Also, the capital and financial health of the country today is fuelling the demand in the finance, real estate and retail sectors, which assures a plethora of opportunities for job seekers in the next three months,’ Basu added.

A surge in hiring plans clearly shows an increase in India’s GDP growth. In addition, the financial development of India is fuelling the demand in finance, real estate and retail sectors and ensures an availability of large pool of jobs in the next three months.

The markets in India, be it a metro or a smaller city, have been buzzing with real estate activity. Residential developments, malls, commercial centers, IT hubs, FDI, real estate mutual funds, among others are commonly heard terms in almost all the cities across India. It is whole new generation

  After the tremendous success of Jobs, Hotels and Matrimonial websites in India. How can Real Estate Market remain untouched. If you have a property to sell and are planning to upgrade or move to another location, now is the good time to do…

Zameen-Zaidad.com, one of the India-s largest real estate portal and adopts secure registration methods, which attracts only serious users and the technology employed gives prime importance to user privacy. In this website one can advertise a property and also search for a property on the basis of type, price, range and location. The search has been organised after assessing the specific requirements of the commercial real estate sector.

According to a survey report, real estate-related Internet traffic reached around 22 million users in April 2005, a 26 percent increase from November 2004. And this is the segment that zameen-zaidad.com intends to tap. Zameen-Zaidad.com aims to become India’s premier property portal that meets every aspect of the consumer’s needs in the real estate industry and will be a one - stop source for buying, selling or leasing any type of property anywhere in the country.

During nest 5 years will be resourceful for Real Estate Investors. Indian real estate market is booming. $8000 Million will be invested in India before common wealth games. Governments are making best strategies to motivate investors but Real Estate Portals like http://www.Zameen-Zaidad.com will definitely play an important role.

A good number of housing projects and townships are proposed to come up at Bhiwadi, Dharuhera, Rewari and Alwar which lie towards the south-west of NCR. But these places lack adequate physical and social infrastructure and so end-user purchase has little scope. The majority of the projects are in launch stage with flats in the price ranges of Rs. 1,350-Rs. 1,950 psf. Residential plots are available at Rs. 1,550 psf in Prasvnath City, Dharuhera, Rewari, however, has minimal supply coming up due to physical amenities as well as competition from stronger markets like Gurgaon and Manesar in the vicinity.

Finally, Sonepat, Kundli and Panipat in the NCR’s north-west stretch have a good presence of business groups and possess a sound potential for real estate growth. The region will account for 6% (11.12 million sq.ft ) of the total supply by 2009-10. Projects such as Ansal API’s sunshine country in Kundli fall in the Grade A segment. Delhi Master Plan 2010, has recommended provision of extra FAR for existing plots and building of 75,000 new housing units every year, laid stress on the housing needs of the urban poor and prescribed constructing residential estates on farmlands in north and south Delhi.

On the other hand, because of high inflation, interest rate hike and SEBI’s stand on land bank valuation, there has been, says Knight Frank Research, a correction of nearly 15% on an average in the capital values of land across the NCR. This is due to a decline in the number of buyers.

The RBI measures have squeezed the realty market from the demand and supply side, but happily curbed the speculative demand in the market as well. And with the end-user driven demand not been affected much,

NCR remains a formidable real estate destination.  

Gurgaon has its own glorious story to tell. It has experienced phenomenal real estate growth by riding on back of IT/ITeS revolution. But the social and physical infrastructure has not kept pace with this progress.

IMT-Manesar, projected to come up in four phases on 1,749 acres, may become the future growth centre till 2009-10, Gurgaon and Menasar will account for 20% (39.08 million sq.ft.) of the upcoming residential property provision. The prominent projects in Manesar include the 25,000-acre Reliance SEZ and a planned IT park while in Gurgaon some of the high-end schemes are Palm Springs of Emaar MGF and Blair & Aralias of DLF. The residential land rates in Manesar now range from Rs. 1,900 to 2,000 psf.

Two other areas of importance are Noida and Greater Noida. Take Noida first. It’s a well developed micro market having substantial office and retail space, with commercial activity deepening in sectors 62 and 63. these factors have given impetus to demand for housing and sectors 92, 93, 94A and 119 are the locations supposed to get the maximum supply infusions. Noida will account for 6% (10.84 million sq.ft) of the total supply expected by 2009-10, says the Frank Knight assessment.

Greater Noida, ranked among the high potential markets, will have the international airport as proposed by the UP government. This prospect has further enhanced its real estate attractiveness. About 26.5 million sq.ft of residential properties are projected to come up by 2009-10. The Taj Expressway, now open to traffic, has brought in higher end –user demand for residential properties. Much impact on the market scenario is expected from Unitech’s 100-acre township, Unworldly City. The residential capital rates are in the range of Rs. 1,800- Rs.2800 psf.

A rising star in the NCR sky is Faridabad, situated south-east of Gurgaon and known primarily as an investment-driven market. Omaxe, RPS, and Eros have given shape to a number of residential projects near Surajpkund while Business Park Town Planners (BPTP) will raise a 1,500-acre township sprawling over sectors 5-7. The total supply of residential property space by 2009-10 may touch 15.94 million sq.ft. The capital values at present vary between Rs. 1,750 and 3,850 psf.